Shortly after the publication of the Tráficos Manuel Ferrer judgment by the Court of Justice of the European Union (CJEU) in response to a request for a preliminary ruling (16 February 2023), the judge from the Valencia court who had referred the questions to the CJEU delivered his judgment in the same case (10 March 2023). This blog post analyses the key points of the Valencia court judgment concerning economic expert reports.
Connor and Lande data: median recovery rates suggest that cartel effects can be five times higher than cartel fines
Many cartels remain undetected by competition authorities. Even if detected, the estimated negative effects of price-fixing cartels on prices can be five times larger than the fines imposed by the authorities. That is, the level of fines is suboptimal. The analysis is based on the dataset of Connor and Lande. It partially contradicts the results of a recent study that suggests effective recovery of cartel injuries when cartels are discovered.
German Federal Court of Justice confirms factual assumption of harm in case of anticompetitive information exchanges and clarifies scope of liability in multi-product cartels
On 5 January 2023, the German Federal Court of Justice (BGH) published an important judgment in relation to follow-on damage actions relating to the so-called German drugstore products cartel (Case KZR 42/20). In its ruling, Germany’s highest civil court also confirmed a factual presumption of harm in the case of anticompetitive information exchanges. This is an important clarification as the BGH had thus far only acknowledged such factual presumption in cases of price-fixing and market-sharing practices. In addition, the BGH clarified that cartel participants are jointly and severally liable for damages caused in relation to products they do not manufacture themselves if they were aware that the anticompetitive practices extended to the other products.
Trucks cartel: New CJEU landmark judgement empowers victims of antitrust infringements with the right to request ex novo documents, created by the defendants (C-163/21, PACCAR e.a.)
On 10 November 2022, the EU Court of Justice rendered another key judgment in relation to the series of damages proceedings brought in Spain against participants in the European Trucks Cartel. This judgment on the interpretation of Art. 5(1) of the Damages Directive clarifies the wide scope of evidence to which claimants can request access to substantiate potential damages claims. The judgment further strengthens the effectiveness of private enforcement of EU competition rules and should have a positive impact on the whole wave of compensation claims against truck manufacturers in Europe.
Trucks cartel: District Court of Amsterdam confirms the possibility for entities to bundle multiple damage claims in one action and applies uniformly Dutch law to those claims
On 27 July 2022, the District Court of Amsterdam delivered an important judgment in which it confirmed previous case law of Dutch courts on the validity of the ‘assignment model’, by which entities, such as CDC, effectively bundle multiple damage claims in one single action. The judgment is in line with EU law, in particular the principle of effectiveness. By choosing Dutch law as the law applicable to all damage claims, the Court has provided an effective solution for victims of competition law infringements.
Assessing the compatibility of seemingly contradictory statistical evidence in the case of damage estimations (reflections on the article written by Peter Bönisch and Roman Inderst)
In a recent publication, Peter Bönisch and Roman Inderst tackle the delicate issue of the evaluation of seemingly contradictory econometric evidence. Introducing the concept of severity measures, they propose a method to avoid the common obstacles plaguing the interpretation of seemingly conflicting empirical evidence through the practical example of financial damage estimation in follow-on cases. This blog post discusses the ideas presented in the paper.
When is a truck a truck? Defining the relevant products for cartel damages claims
On 1 August 2022, the Court of Justice of the European Union has ruled in Case C-588/20 Daimler (Ententes – Camions à ordures ménageres) that specialised trucks are covered by the cartel found in the European Commission’s 2016 decision in Case AT.39824 Trucks. The judgment concerns the fundamental and practically relevant question of how to identify the products directly affected by a cartel infringement according to the decision of a competition authority, which in this respect is binding for the civil courts in a follow-on action for damages. As a result, the right of injured parties to access the Statement of Objections sent by that authority to the cartelists prior to the adoption of the decision will gain in importance, especially if this decision has finally been adopted after a settlement.
Trucks Cartel: the Supreme Court of Norway confirms jurisdiction of the Norwegian courts for follow-on damage action based on the principles of joint and several liability and the civil liability of the ‘undertaking’
In an interesting decision the Supreme Court of Norway confirms jurisdiction of the Norwegian courts for a follow-on damage action based on the principles of joint and several liability and the civil liability of the ‘undertaking’.
CJEU clarifies the temporal application of the new EU Damages Directive’s five-year limitation in cartel cases
In its landmark judgment of 22 June 2022 in Case C-267/20 – Volvo and DAF Trucks, the CJEU confirmed that the five-year limitation period under the EU Damages Directive on antitrust damages applies to all cartel damages claims which at the time of the transposition of the Directive into national law were not yet time barred. Equally, the Court stresses that neither the burden nor the standard of proof for the quantification of competition damages must be too high, and that national courts can estimate the amount of cartel damages where the action was brought after 26 December 2014. The judgment provides much awaited legal certainty for many cases in which the temporal application of the new limitation period and the quantification of damages under the Directive is at the heart of the debate.
Trucks cartel: AG Szpunar clarifies the application of Article 5 of the EU Damages Directive to documents to be created ex novo
On April 7, 2022, AG Szpunar delivered its opinion in the context of a request for a preliminary ruling made by the Commercial Court 7 of Barcelona to the CJEU concerning, i.a, the interpretation of Article 5(1) of Directive 2014/104/EU on the disclosure inter partes of evidence.